Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: VAT Audit :: Central Excise rule to resale the machines to a new company :: TDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: empanelment :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD
 
 
« GST - Goods and Services Tax »
 GST Update On Proof Of Export
 GST impact on economy - Part 2
 Banks, insurance companies under lens for inflated tax credits
 GST-Practical Difficulties In Filing And Solution, Code Of Ethics (Indirect Taxes)
 How the dynamics between GST and inflation will play out
  GST data may be used to track income-tax evaders
 Documents, Accounts & Records In GST (Part-III)
 GST data may be used to track income-tax evaders
 GST brings down cost of Delhi Metro expansion
 CBEC calls for reality check to boost GST mop-up
 With GST, whole country is trader’s market
 Panel set up by government for more GST tweaks
 Assocham for hydropower GST at par with other renewables
 GSTN to provide remaining IT functions on GST portal in next 2-3 months
 GST will become good and simple tax in a few months

GST data may be used to track income-tax evaders
December, 07th 2017

The government may be looking to use data obtained from Goods and Services Tax (GST) filings to track those who are escaping income-tax, two people close to the development said.

The government is setting up a mechanism wherein data obtained through GST reporting could be correlated with the income-tax filings.

While the project is still in the initial stage, the government wants to create a database whereby income of companies and their promoters could be matched with that of the tax returns filed, said a person in the know.

It is still unclear whether the government would use this data to dig out tax evasions in the earlier years or whether this will only be for prospective tax scrutiny.

Industry trackers said tax officers don’t have to go through the sea of data to make sense as big data analytics could do the same for them and throw results or raise red flags.

“Technically, it is possible to use GST data to draw linkage with the income-tax data through the common data set with the help of analytics. Currently, the GSTN and tax department already have the data to carry out the risk analysis where outliers in terms of the industry average of tax payments is scrutinised and those not paying or under-reporting company revenues could be questioned,” said Jaskiran Bhatia, partner, tax technology and analytics, Deloitte India.

Take the example of a unit manufacturing a specialised chemical used in the pharmaceutical industry. The promoters of the company have a turnover of about Rs 30 crore annually for the past few years, but they were paying corporate tax only on about Rs 4 crore. Not just that, the promoters have been underreporting their own income and escaping income-tax.

“Such manoeuvrings are now tough,” said a tax adviser for the promoter family. “Earlier, there was no record of raw materials purchased and goods supplied; now, that cannot be manipulated, resulting in a sudden surge in the company’s revenues. Also, there are other tricks promoters used to show that their income is much below the highest I-T band,” the adviser told ET.

“It is imperative that the GST return is tied with the financials submitted to the income-tax office. Any discrepancy would be questioned by the income-tax office and the taxpayers would be required to explain the deviations,” said Amit Maheshwari, partner, Ashok Maheshwary & Associates.

Tax experts say a sudden spurt in revenues in a company’s turnover mainly due to GST could raise red flags. “If the GST return shows a big jump in turnover of the taxpayer (due to increasing formalisation of the economy, which is definitely a possibility in several cases) compared to the previous years, this could lead to tax officers questioning the past year’s returns as well,” said Maheshwari.

To bring more companies under the corporate tax net and zero in on areas where registered companies pay less tax through underreporting, the government has, since 2016, already been running tax analytics on the sea of data collected.

ET had first reported on August 3 that the government was conducting data analytics on income-tax records of taxpayers and is set to go after benami properties.

The tax department has commenced raids across the country, starting with the biggest income-tax evaders, on those creating and owning benami properties.

The tax department is already analysing a maze of data including phone records, credit cards and PAN details, tax returns and even social media platforms of the tax payers.

It is virtually impossible to go through various structured and unstructured data sources and make sense of it, but for the big data analysis tools used by the tax department.

The department also involves some outside technology experts to analyse the data or provide the necessary tools.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions